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market segmentation

A Consumer Electronics Company Personalized Marketing Advertisements for Different Target Audiences by Leveraging Market Segmentation Analysis

Market Segmentation Analysis

The global consumer electronics industry is undergoing a rapid phase of change as leading brands are increasingly focussing on developing personalized product and service offerings for their customers. Also, with the proliferating marketing platforms today, making marketing and promotion more organized and targeted is becoming pre-requisite for businesses. This is where the real power of leveraging market segmentation analysis comes into play. Market segmentation analysis helps businesses to enhance customer retention, establish brand identity, better customer relationship, and increase sales conversion.

Market segmentation analysis can help you to efficiently group customers with similar characteristics together and create better value for them. Request a FREE proposal today!

Business Challenge

The client is a consumer electronics company based out of North America.

The client, a consumer electronics company, was looking to devise a sound marketing strategy to market their new digital cameras. They wanted to efficiently utilize their marketing budget to focus the most lucrative customer segments. To do so, they wanted to understand their customers’ needs and demands and categorize customers with similar requirements together. By doing so, they wanted to personalize marketing advertisements for different target audiences. They approached the experts at Infiniti Research to leverage their expertise in offering market segmentation analysis.

Other key objectives that the client wanted to achieve by leveraging Infiniti’s market segmentation analysis were:

  • Focus the most profitable customer segments and enhance customer retention
  • Better reach out to the target audiences and enhance competitiveness
  • Devise personalized product/service offerings for their customers and better customer relationship
  • Identify the right marketing channels to reach out to the target customers’

Contact us to know how our solutions can help you build an ideal market segmentation strategy.

Our Approach

To help the client tackle the above-mentioned challenges, the experts at Infiniti Research conducted a four-phased approach that involved:

Customer needs assessment to analyze the evolving needs and demands of target customers

Customer satisfaction survey to understand the satisfaction level of customers regarding the client’s product and service offerings

Sales assessment to evaluate the market potential for the new product in the next five years

Customer segmentation analysis to group customers with similar characteristics and needs together

Results Obtained

By segmenting customers into different sub-categories, the client was able to gain detailed insights into their customer segments. This helped them to devise personalized offerings for them. By leveraging Infiniti’s market segmentation analysis, the client was also able to create targeted advertising and marketing campaigns for different subsets of customers.

In addition, with Infiniti’s market segmentation analysis, the client was able to:

  • Increase competitiveness
  • Enhance customer retention and reduce churn rate
  • Enhance sales and revenue
  • Efficiently utilize marketing budget

Our market segmentation analysis will help you assess changes in customer behavior and measure the effectiveness of a marketing campaign. Request for more info here!

target market segmentation

Target Market Segmentation to Enhance Customer Retention Rate by 17% for a CPG Company

Target Market Segmentation Analysis for a CPG Company

Although the global CPG industry has been experiencing positive growth over the past few years, a variety of complex challenges such as pricing pressure, investment volatility, and customer experience management issues have started coming to the forefront. Owing to these challenges, new approaches to understanding the market, market niches, and target customers have become imperative for CPG companies to gain a competitive advantage. Also, it has become vital for CPG companies to reinvent the way they engage with their customers and focus on lucrative customer segments. However, this becomes extremely difficult without efficiently segmenting customers and prioritizing them based on their value for the brand. This is where Infiniti’s target customer segmentation comes into play.

Our target market segmentation strategy can help you in optimizing your product launch and marketing strategies and reaching out to the right set of customers. Request a FREE proposal!

Business Challenge

The client is a CPG company serving customers across the Midwestern United States. The company spent over 33% of their overall marketing budget on wrong customer segments and marketing channels. Moreover, due to their unstructured approach to sales and marketing, they focused on targeting customers individually. As a result, the client encountered a huge dip in the sales rate. Also, the customer churn rate increased by 21%.

They realized the need to prioritize their target customers based on their value for the brand. By doing so, they wanted to direct their marketing budget into specific communication channels that would reach their target customer base. To do so, they approached the experts at Infiniti Research to leverage their expertise in offering target market segmentation.

Furthermore, by leveraging Infiniti’s expertise in offering target market segmentation analysis, the client wanted to:

  • Limit their target audience and focus on the lucrative customer segments
  • Efficiently categorize customers with similar characteristics such as age, gender, buying behavior, and spending patterns together and target them in a cost-effective manner
  • Analyze various customer segments and evaluate their value for the brand
  • Identify the needs, priorities, and common interests of the customers and adequately position their products to meet customers’ demands

Our target market segmentation analysis can help you to divide customers into specific segments and offer more personalized services to them. Contact us to leverage our target market segmentation analysis.

Solutions Offered

Our experts conducted customer segmentation and need analysis as a part of the target market segmentation process. This phase of the target market segmentation analysis helped the client to segment their target customers into various groups based on factors such as shopping patterns, spending behavior, and their demands.

As a part of the target market segmentation strategy, our experts also conducted a customer satisfaction and loyalty assessment, which helped the client to understand the satisfaction level of their customers regarding their products and services. Also, by conducting a demo marketing campaign, the experts helped the client to identify the right channel to promote their product offerings.

The target market segmentation process also involved a sales assessment study, where our experts analyzed the sales data of the client and their direct competitors. The analysis of the past sales data helped the client to identify their frequent customers and products with the highest demand in the market.

Results Obtained

With Infiniti’s target market segmentation approach, the client was able to efficiently categorize their customers based on factors such as purchase patterns, spending behavior, interaction with the brand, past purchases, and their satisfaction level. This helped the client to efficiently devise targeted marketing and promotional campaigns for specific segments. Furthermore, by leveraging our target market segmentation strategy, they were able to effectively engage with their target customers and reduce customer churn rate. Also, with our target market segmentation solution, the client was able to efficiently utilize their marketing budget and enhance customer retention rate by 17%.

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Request for more info to gain detailed insights into our target market segmentation analysis and learn their benefits for your business.

target market analysis

How Target Market Analysis Can Boost Your Business Growth

Whether you’re a start-up or a well-established company, it is becoming vital to reinvent your traditional marketing strategies and incorporate new approaches to target different customer segments. Also, focusing on the right channels to reach the target customer base and attaining a wider understanding of the company’s target market is becoming imperative to gain a leading edge in the market. This is where the real power of target market analysis comes in. Leveraging target market analysis can help companies determine the target customers form a pool of customers to whom you would want to sell your products or services. In this article, we’ve listed out four major benefits of leveraging target market analysis.

Benefits of Leveraging Target Market Analysis

Want to identify the right target customer groups and devise personalized marketing strategies for them? Our target market analysis can help. Request a FREE proposal today!

Importance of Target Market Analysis for Businesses

#1: Reach the right audience

As a marketer, you’ll always attempt to market your products and services to a large customer base. But, this can result in wastage of marketing budget and resource as you’ll be marketing to consumers who are not interested in what you have to offer. In this context, identifying lucrative customer segments and creating personalized marketing strategies can help you to efficiently utilize your marketing budget. This is one of the major benefits of leveraging target market analysis. For instance, with millennials becoming the generation with more buying power in the United States, it’s becoming imperative for major companies in the United States to identify their unique needs and demands and devise personalized strategies to attract this segment of customers.

#2: Identify niche market segments

In today’s competitive marketplace, rather than trying to reach a large audience group, focusing on niche market segments can help achieve maximum profitability. Target market analysis helps businesses to identify the needs and requirements of niche customer segments, tailor products in the right way, and communicate efficiently with the target group. Furthermore, target market analysis also involves conducting target market segmentation analysis, which makes it easier for businesses to serve customers with similar needs and requirements together.

Is your company offering multiple products and services? If yes, you’ll need to create a target market segment strategy for each product and service category. Our target market analysis can help. CONTACT US now!

#3: Creating cost-effective strategies

Once you understand your target market, you can make well-informed business decisions on media allocation. Consequently, you can create personalized promotion strategies to lure targeted customers. Furthermore, constantly tracking marketing performance and conducting A/B testing can help you tweak your marketing plans when required. This will eventually enhance the return on marketing investment.

#4: Managing customer needs and expectations

Target market analysis helps businesses to efficiently meet the needs and demands of their customers by tailoring products and services for them. By efficiently managing customers’ expectations, businesses can achieve huge profitability and outpace the market competition. Furthermore, target market analysis helps businesses in devising target marketing strategies through which businesses can arrive at a decision on whom to direct their marketing and sales efforts to achieve maximum savings.

Still wondering how target market analysis can help your business? Request for more info!

Want to know in detail the steps involved in a target market analysis? Read our article here: Roadmap to target market analysis and strategic planning

Roadmap to Target Market Analysis and Strategic Planning

Market segmentation analysis

Infiniti’s Market Segmentation Analysis Helped a CPG Company Focus on Lucrative Customer Segments and Drive Profitability

Market Segmentation Analysis for a Consumer Packaged Goods Company

Due to growing ethnic diversity and broadening income disparity, consumers are becoming increasingly heterogeneous in their product preferences. This has severely impacted various market sectors, especially the consumer packaged goods (CPG) sector. With this, the need to identify subsets of a market based on demographics, needs, priorities, common interests, and other physiographic or behavioral criteria is becoming imperative for CPG companies to better communicate with their customer segments. To do so, companies are partnering with firms like Infiniti Research to leverage their expertise in offering market segmentation analysis solution. The insights obtained from Infiniti’s market segmentation analysis has helped various global giants identify the most lucrative customer segments and personalize business strategies for them to achieve maximum profits.

Are you facing difficulties in breaking down your market into targetable groups? Our market segmentation analysis solutions can help. Request a FREE proposal today!

Business Challenge

The client is a consumer packaged goods supplier based out of Germany. The client’s unstructured approach to marketing and promotional strategies resulted in huge customer churn. Also, as the client’s key competitors had already adopted a more focused approach by understanding the needs of their target customers, the client was losing ground to their competitors. Also, the client was not able to meet their customers’ needs and demands. This subsequently increased the customer churn rate by 13%. The client, therefore, realized the need to create small segments comprising of like-minded individuals and devise personalized business strategies to meet their needs. To do so, they approached Infiniti Research to leverage their expertise in offering market segmentation analysis solution.

With Infiniti’s market segmentation analysis solution, they also wanted to:

Better serve customers’ needs and wants – By leveraging Infiniti’s market segmentation analysis, the client wanted to categorize their customers into various segments based on their needs and requirements. By doing so, the client wanted to personalize their marketing and promotional strategies to efficiently serve their customer base.

Increase chances for up-selling and cross-selling – By understanding their customers’ purchasing patterns, the client wanted to recommend other relevant products matching their requirements and increase the chances of up-selling and cross-selling.

Differentiate product prices by segment – As managing customers’ price perception has become important for businesses, the CPG company wanted to differentiate their product’s prices by segments to sustain higher margins.

Attract additional customer groups – By employing a target market segmentation analysis approach, the client wanted to devise targeted marketing plans for different customer segments and differentiate their products according to their customers’ demands.

Focus only on target audiences – The client noted that promoting their products across wide customer segments resulted in huge loses for the company. This even increased the churn rate. The client, therefore, wanted to leverage Infiniti’s market segmentation analysis to identify their lucrative customer segments and focus on personalizing their business strategies for profitable customer segments to achieve maximum profits.

CONTACT US to know how our market segmentation analysis can help you efficiently categorize your customer segments and create compelling marketing and promotional strategies for them.

Solutions Offered and Value Delivered

To help the client segment their customers into various groups, the experts at Infiniti Research followed a four-phased approach to customer segmentation.

  • The initial step of market segmentation analysis involved conducting preliminary research. As a part of preliminary research, the experts conducted customer surveys. The factors such as highest purchased consumer packaged goods, customers’ shopping patterns, and their preferred channels of purchases were analyzed.
  • In the second phase of market segmentation analysis engagement, the experts segmented customers into various categories considering factors such as their age, geography, income, lifestyle, and behavior.
  • The next phase of the market segmentation analysis involved filtering lucrative customer segments from the target market. For this, the experts conducted manual and statistical analysis.
  • The final phase of the market segmentation analysis involved conducting demo marketing and promotional campaigns for the categorized customer segments to gauge the effectiveness of different segments.

The insights obtained from Infiniti’s market segmentation and customer analysis solution helped the client to understand their customers more efficiently and craft compelling marketing and promotional strategies for them. This helped the client to influence their customers’ buying decision. This targeted marketing approach even helped the client to better match their lucrative customers’ needs and attract new customers. Also, the market segmentation analysis engagement helped the client to recommend products to their customers according to their needs and demands. This increased up-selling and cross-selling and further resulted in an increase in the company’s sales rate.

By understanding the needs and demands of specific customer segments, the client was also able to create their own niche products to attract wider customer segments. This further helped the company to utilize their marketing budget on their lucrative customer segments. Also, with Infiniti’s market segmentation analysis solution, the CPG company was able to reduce customer churn and attract new customers.

By leveraging Infiniti’s market segmentation strategies, the client was able to achieve sales growth by 19%.

19% Increase in Sales Rate

Want to gain more insights into the benefits of leveraging our market segmentation analysis solution? Request for more info!

What is market segmentation analysis?

Market segmentation analysis is the process of segmenting customers into smaller groups based on their unique characteristics including age, income, requirements, behavior, and purchasing patterns. Market segmentation helps marketing professionals to personalize marketing and promotional activities for each segment to gain maximum traction. This also enhances customers response rate for products and services.

How to do market segmentation analysis

How to do market segmentation analysis

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Here are some other examples of market segmentation analysis. Read the below articles to know how Infiniti’s market segmentation analysis solution has helped companies across other industries.

https://www.infinitiresearch.com/white-papers/target-market-segmentation-infiniti-research-success-story

https://www.infinitiresearch.com/casestudy/market-segmentation-strategies

https://www.infinitiresearch.com/casestudy/market-segmentation-sporting-goods

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